Larger international container ships visiting New Zealand create both opportunities and risks, says a Ministry of Transport study.
This is one insight from the Future Freight Scenarios Study, commissioned to provide impartial information to help the freight sector plan effectively for more larger ships visiting New Zealand.
“The study shows that more big ships coming to our shores will reduce the cost of international transport, but these savings are likely be outweighed by higher domestic transport costs, particularly for exporters and importers far away from ports able to handle the larger ships,” says Aviation and Maritime general manager Nick Brown.
“An efficient port and shipping sector is vital, as 99% of our freight by volume is carried by sea. New Zealand’s international sea freight costs are 21% higher than Australia,” says Brown.
Brown says larger ships coming in will only be an advantage if the private sector and Government continue to lower domestic freight costs and increase efficiency in the port and shipping sectors.
“Government has a role in providing land transport capability and regulation that help to reduce domestic freight costs. Investments to improve road and rail links to ports, are examples of this. The permitting regime for high productivity motor vehicles is also important.”
Inland port and intermodal logistics hub developments — which provide a way of consolidating cargo and moving it cost-efficiently to and from container ports — are other encouraging developments.
The study provides a national perspective of the impact different decisions in the shipping and port sectors could have on the freight system and New Zealand’s economy.
It does this by modelling ten possible future scenarios, to draw a picture of different futures in the port and freight sector, depending on different decisions made by the sector.
Brown encourages the sector to consider the study and use its results.
